Gas Prices Rising Rapidly

The price of oil now reaching record highs as the world awaits OPEC's next move.

Gas prices in Houston rose to $2.30 a gallon last week, four cents more than the previous week.  The national average is $2.56, 27-cents more than last year.

The Saudi energy minister says it could be next year before oil producing countries in the Middle-East can clear a supply glut, meaning global oil markets may not rebalance anytime soon.

But it looks like the shale revolution could ultimately cause prices to reverse.  

Meanwhile, oil is well over $60 a barrel, and we're almost producing more oil than we ever have in the U.S.

“Because the demand is doing even better than the supply and that's a good thing,” says Phil Flynn, senior energy analyst for PFGBEST. “Global demand is growing like crazy, nobody believed a few years ago the economy could be doing this good, but guess what?  It is.  And when the economy burns up like this it burns a lot of oil.”

The U.S. also is seeing a shortage of trucks as businesses rush to transport their goods.

“And not only that, they're having a harder time getting enough fuel,” says Flynn.  “Fuel prices for diesel have gone through the roof.”


Sponsored Content

Sponsored Content